Fitch Affirms WFCM 2016-NXS6.
KEY RATING DRIVERS
Stable Loss Expectations: Overall pool performance and loss expectations remain stable since issuance. There have been no specially serviced loans since issuance. Five loans (3% of pool) are on the master servicer's watchlist. One loan (0.7%), Fairfield Inn Avon, which is secured by an 82-room hotel property in the Cleveland suburb of Avon, OH, has been identified as a Fitch Loan of Concern due to several rooms being taken offline as the property undergoes a property improvement plan. The servicer is currently in the process of setting up a cash management account.
Minimal Change in Credit Enhancement: As of the September 2018 remittance report, the pool's aggregate principal balance has been paid down by 1.3% to $747.5 million from $757.1 million at issuance. There have been no realized losses to date.
Pool Concentrations: Nine loans (27.1% of pool) are secured by office properties. Eighteen loans (26.8%) are secured by retail properties, which include The Falls (4.6%), a regional lifestyle center operated by Simon located in Miami, FL and Peachtree Mall (2.5%), a regional mall operated by Brookfield located in Columbus, GA. Both properties have exposure to either Macy's and/or JC Penney; however, none of the anchors at these properties are on any recent store closing list.
Collateral occupancy at The Falls and Peachtree Mall remains strong at 96.5% and 96.2%, respectively, as of YE 2017; however, in-line sales at both of these properties have declined.
At The Falls, comparable in-line sales for tenants, excluding Apple, occupying less than 10,000 sf have declined to $385 psf as of TTM June 2017 from $437 psf as of TTM June 2016. At Peachtree Mall, comparable in-line sales for tenants occupying less than 10,000 sf have declined to $363 psf as of YE 2017 from $382 psf as of YE 2016.
Limited Amortization: Ten loans (20% of pool) are full-term, interest-only and 14 loans (28%) are partial term interest-only. The remaining 26 loans (52%) consist of amortizing balloon loans. Based on the scheduled balance at maturity, the initial pool is schedule to pay down by 9%.
Limited Hurricane Exposure: One loan (0.8% of pool) is secured by a student housing property located in Lillington, NC, within close proximity to Campbell University. The area has experienced significant flooding from Hurricane Florence and has been designated a disaster area by FEMA. Fitch awaits further updates from the servicer regarding whether or not the property has sustained any damage.
The Rating Outlooks on all classes remain Stable. Fitch does not foresee positive or negative ratings migration until a material economic or asset-level event changes the transaction's overall portfolio-level metrics.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following ratings:
--$17.4 million class A-1 at 'AAAsf'; Outlook Stable;
--$115.8 million class A-2 at 'AAAsf'; Outlook Stable;
--$150.0 million class A-3 at 'AAAsf'; Outlook Stable;
--$206.0 million class A-4 at 'AAAsf'; Outlook Stable;
--$31.1 million class A-SB at 'AAAsf'; Outlook Stable;
--$48.3 million class A-S at 'AAAsf'; Outlook Stable;
--$520.4a million class X-A at 'AAAsf'; Outlook Stable;
--$120.2a million class X-B at 'AA-sf'; Outlook Stable;
--$36.0 million class B at 'AA-sf'; Outlook Stable;
--$36.0 million class C at 'A-sf'; Outlook Stable;
--$43.5ab million class at X-D 'BBB-sf'; Outlook Stable;
--$20.8ab million class at X-E 'BB-sf'; Outlook Stable;
--$43.5b million class D at 'BBB-sf'; Outlook Stable;
--$20.8b million class E at 'BB-sf'; Outlook Stable;
--$8.5b million class F at 'B-sf'; Outlook Stable.
(a) Notional amount and interest-only.
(b) Privately placed and pursuant to Rule 144A.
Fitch does not rate the class G, H or interest-only X-FG, and X-H certificates.
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|Publication:||Daily the Pak Banker (Lahore, Pakistan)|
|Date:||Jan 7, 2019|
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